It is planned to invest 3.33 billion yuan to build a silicone project

On the evening of June 29, Luxi Chemical announced that the 28th meeting of the 8th board of directors held by the company reviewed and approved the "Proposal on Investment and Construction of Silicone Projects".
Combined with the company's product structure and market development trends, the company It is planned to invest in the construction of a 400,000-ton/year organic silicon project in the first phase of the 1 million tons/year organic silicon project, to further expand the production capacity of organic silicon products, continue to enrich the industrial layout of the park, and continuously improve the company's competitiveness and comprehensive strength
.

Investor:

The 400,000-ton/year organic silicon project of the first phase of the 1 million tons/year organic silicon project is implemented by our company, and the basic information is as follows:

Company name: Luxi Chemical Group Co.
, Ltd.

Unified social credit code: 91370000614071479T

Address: Liaocheng High-tech Industrial Development Zone, Luxi Chemical Headquarters Resident

Enterprise type: other joint stock limited company (listed)

Legal representative: Zhang Jincheng

Registered capital: RMB 1,919,676,011

Business scope: production and sales of chemical fertilizers and chemical raw materials within the scope of safety production licenses (operated by branches above the upper limit); heating and steam supply services; production and sales of chemical products (except dangerous chemicals and ready-made drugs); chemical Design, manufacture, installation and sales of production-specific equipment; chemical technology consulting and services
.
Import and export of goods or technologies (except those prohibited by the state or involving administrative approval)
.
(Projects subject to approval according to law can only carry out business activities after approval by relevant departments)

Basic information of the investment target: The construction content of the first phase of the 1 million tons/year organic silicon project mainly includes: 400,000 tons of organic silicon monomers and auxiliary facilities such as supporting public works
.

It is estimated that the total investment is 3.
33 billion yuan, and the monetary funds used for the project construction are mainly through self-raised enterprise and bank loans to ensure the smooth implementation of the project construction
.

The project is expected to be completed and put into operation by the end of 2023.
After the project is put into operation, it is expected to achieve an annual operating income of 4 billion yuan and a profit and tax of 700 million yuan
.

Luxi Chemical said that relying on the industrial structure and integration advantages of the park, combined with the market changes of silicone products, the company plans to further expand the production capacity of advantageous products, increase the proportion of new chemical materials products, continuously optimize the industrial structure of the park, improve profitability, and enhance the park.
competitiveness
.

During the construction of the project, the investment cost will be affected by various factors such as engineering materials, labor costs, project construction progress, etc.
, which will affect the investment cost of the project; there are uncertainties in the project test drive, raw material prices, and future product market sales.
The income is uncertain and there are certain risks; in addition to bank loans and self-raised funds for the construction of this project, the company will actively study other financing channels and methods to prevent and reduce capital risks
.